MD_DA650                                                                        
DA                                                                              
MD DA650 Nonfat Dry Milk - Central and East                                     

MADISON, WI.  March 24, 2016 (REPORT 12)                                        


NONFAT DRY MILK - CENTRAL AND EAST                                              

CENTRAL: Central low/medium heat nonfat dry milk prices are steady. 
NDM production is advancing from marginal increases in farm milk 
intakes. Although manufacturers report a number of inquiries this 
week, not many transactions occurred in this holiday-shortened week. 
Contract sales represent the bulk of transactions in the region. Most 
buyers are content with delaying purchases, with no urgency beyond 
immediate need. A majority of buyers look to reenter the marketplace 
if/when expected price declines occur. Buyers continue to get 
offerings in the resale market, with deals transacted in the Central 
at the bottom of the range. NDM inventories continue to build. The 
low/medium NDM market undertone is steady to weak. A quiet buying 
week helped maintain high heat nonfat dry milk previous week's 
prices. Production rates are on a made-to-order basis as condensed 
skim supplies increase. Demand domestically is steady. Inventories of 
high heat NDM are mixed.
EAST: Prices are steady for Eastern low/medium heat nonfat dry milk. 
NDM production has increased, with many areas of the East region in 
the various stages of the spring flush. Educational institutions have 
recessed ahead of the holiday weekend, resulting in increased levels 
of milk supplies into balancing. For some manufacturers, the volume 
of condensed skim to drying is curbed somewhat as additional loads 
clear to Class II and Class III seasonal needs. Low/medium nonfat dry 
milk market demand is soft this holiday week. Buyers with adequate 
holdings are reluctant to make purchases throughout the holiday 
period. High heat nonfat dry milk production is controlled as heavy 
weekend milk volumes favor low heat NDM production. High heat NDM 
stocks are available for near-term contracted commitments. Wednesday 
at the CME Group, Grade A NDM closed $0.7325, down $0.0050 from last 
Wednesday. 

F.O.B. CENTRAL/EAST:  Includes EXTRA GRADE and GRADE A                          
LOW/MEDIUM HEAT:   .7100 -  .8400         MOSTLY:   .7400 - .8100               
HIGH HEAT:         .8500 - 1.1000                                                

1100CT Daniel.Johnson/Janet.Linder@ams.usda.gov
USDA/AMS/Dairy Market News, Madison, Wisconsin (608)557.7000
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home